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  • Tuesday, March 29, 2022 9:45 AM | Anonymous

    Add Air Diagnostics to Your Service Offerings in Eight Steps

    Unless you know where to start, adding air diagnostics to your HVAC company can seem daunting. Without a plan, you may even get frustrated and quit before you give yourself a chance to succeed. If this sounds familiar, keep reading as we look at eight steps you can take to help add air diagnostics to your service offerings.

    Step 1: Start with Why

    Here’s a hard truth; if you can’t explain why you want to add air diagnostics into your company, your technicians will never buy in. We often know what we want to do and how we want to do it, but we don’t know why. So, I encourage you to ask yourself, “Why do I want to add air diagnostics into my company? What’s my purpose and motivation?”

    At first, most contractors can’t explain why they want to start air diagnostics. If you’re in this position, grab a pencil and piece of paper. Jot down a few sentences that describe why it’s important to you, your company, and your customers. At first, this act will feel clunky, but the ideas will quickly flow.

    Next, consider why air diagnostics are important from a technician’s perspective. Why would they want to do air diagnostics on each call? Why would they care? Just because you say so may work temporarily, but it will rarely produce any lasting change. If your technicians understand why air diagnostics improve their skills, make their lives easier, and increase profits for everyone, they are more likely to accept instead of reject your new idea.

    Step 2: Choose a Chief Airhead

    To drive the change needed to add air diagnostics, you need to identify a leader. Choose someone who loves a challenge and will keep everyone moving forward when times get tough or busy. The leader, or “chief airhead,” is someone who has a vision for the airside. They see what must happen with the readings and how they can create growth for the company.

    This leader might be you, or maybe a senior technician who understands what needs to happen. Choose wisely. Because whoever it is, your chief airhead needs to understand airflow and be the go-to person. If you assign someone apart from yourself this position, make sure you equip and back them up to do the job. Don’t undermine their position by constantly second-guessing them or micromanaging their work. Instead, get out of their way and let their results speak.

    Step 3: Purchase Air Diagnostic Test Instruments and Accessories

    Air diagnostics start with static pressure — one foundation of airflow. It is the amount of resistance a fan must pull and push air against. Before your team can take any measurements, you need to invest in some test instruments and accessories to measure static pressure. They include:

    • Digital manometer
    • Static pressure tips and hoses — neoprene or silicone
    • 3/8-inch test port plugs
    • Small drill/impact gun with a unibit and 3/8-inch drill bit with a sheath/stop
    • Thin screwdriver for cleaning out internal duct liner/insulation.

    You can typically put together a complete kit with all these items for between $200 to $300. It might tempt you to skip some of these items, but don’t. They each have a purpose.

    Air Diagnostics Diagram.

    AIR DIAGNOSTICS: Static pressure testing is a foundational test to start air diagnostics. As you create a system pressure profile, you see which components restrict airflow the most. (Courtesy of David Richardson)

    Step 4: Teach the Fundamental Skills

    As with any new skill, you must practice before becoming a master. Give your technicians time to learn and practice static pressure measurement. It isn’t something where you wave a magic wand and suddenly it happens. The implementation takes time and effort. If it were easy, everyone in our industry would do it.

    You may decide to handle this step in your office, training room, or with on-the-job training like a ride-along. The key is to start and allow each technician to begin.

    Some technicians will develop quickly, while others take more time and coaching. This pace is normal, so be patient and understanding. Don’t believe that every technician will nail these skills on the first attempt. Instead, give them some grace and equip them with the tools to succeed.

    This single step is where you will identify and correct the most common mistakes many technicians make as they measure. Don’t skip this step — it is too important.

    Step 5: Identify Equipment and System Information to Gather

    For best results, follow a checklist approach and develop a written process. It will assure everyone gathers the same information and takes the same readings. If you need help, email me for a quick start guide and reports for ideas.

    It’s best to start with the indoor equipment as the first step. Gather the following necessary data plate information:

    • Model and serial number
    • Maximum ESP (External Static Pressure) rating
    • Input and output capacity (gas-fired furnace)
    • Temperature rise range (gas-fired furnace)
    • Evaporator coil model number (if a separate component)

    After recording the data plate information, perform a visual inspection. Check the cleanliness of the blower wheel, the motor type, and fan speed settings for both heating and cooling operation. Also, pay close attention to the filter size and media type. A lot of airflow issues result from this component.

    Finally, record the outdoor unit model and serial number. The capacity of the outdoor unit is important to determine cooling airflow requirements.

    For extra insurance, have your techs take photos of anything of interest or concern. It’s also a good idea to get a picture of the equipment data plates.

    Step 6: Show Where to Install Test Ports

    After documenting the necessary information from the equipment, it’s time to identify test port locations. Most HVAC installations need a minimum of four 3/8-inch test locations to measure pressure readings.

    Drilling test ports is one of the most stressful parts of air diagnostic testing for newer technicians. The fear of drilling into a coil, heat exchanger, or electrical component is real. If your technicians don’t overcome this fear, your progress will come to a screeching halt. You can help ease their anxiety by having them learn and practice on old scrap duct or replacement equipment. This step gives them confidence and helps them overcome a big obstacle to testing.

    Technicians can also avoid unintentional damage by removing access panels to install ports in them while they’re off the equipment. For any fixed panels that a technician cannot remove, use a 3/8 drill bit, and stop to install the ports. The stop keeps the drill bit from penetrating too far into the equipment or ducts.

    Be sure they clear out any insulation with a control screwdriver or scratch awl to ensure nothing interferes with the pressure reading. To minimize questionable readings, stay away from sharp corners, changes in air direction, and the fan inlet. Turbulence in these areas often leads to questionable numbers.

    Step 7: Measure Static Pressure

    Once a technician has the basic equipment information and test ports installed, it’s time to measure static pressure. Four static pressure readings are essential for proper air diagnostics. They are:

    • External Static Pressure (ESP)
    • Filter pressure drop (Δp)
    • Coil pressure drop (Δp)
    • Duct pressures (supply and return)

    For newer technicians, focus on ESP as the first test to measure and record. It can become overwhelming if you try to have them take all four readings at once. ESP helps indicate a potential problem, but it won’t identify what it is. The additional readings are necessary to discover the restrictions.

    Once your technicians are comfortable measuring ESP, have them gather the other measurements needed to calculate the last three static pressure measurements. As they measure, have them write their readings down on paper so they can see what is happening. It will help them learn and see how pressures change across the airside of the system.

    Step 8: Define the Hand-off

    Once the technician has the readings, you’re now at a fork in the road. You must decide on what to do with this newfound information. This stage will end the technician’s involvement in air diagnostics for some of you. They will gather the readings as part of their call, let the customer know they found potential problems, and have someone else from your company contact them.

    Another path is to have your technicians take additional measurements to gather more information and further the diagnostics. These decisions will depend on the skill of the technician and their ability to discuss findings with the customer. Some techs love to talk with customers and discuss their findings. Others just want to fix problems and leave the talking to others.

    Remember, air is the most misunderstood principle in the HVAC industry. Many contractors talk about it, but only the best will learn to measure, diagnose, and repair air problems. If you decide to accept the challenge, I hope these eight steps have given you some ideas that will help you along the way.

    - David Richardson, The HVACR News
    View article: 



  • Tuesday, January 18, 2022 11:16 AM | Anonymous

    The Ware family introduced Johnstone Supply to Florida by opening their first branch in Jacksonville in April 1981. Since then, the Ware Group has grown to 27 stores and become a leading HVAC/R wholesaler in Florida and South Carolina. Each branch is designed with the Johnstone Advantage in mind, “Saving You Time. Making You Money”.
    Johnstone Supply the Ware Group (CEO) Henry Puente, (President) Mike Bell and (Chairman) Chris Ware

    Johnstone Supply the Ware Group (CEO) Henry Puente, (President) Mike Bell and (Chairman) Chris Ware


    Johnstone Supply, Inc. has over 400 locally owned and operated locations across the United States. National buying power benefits their customers by having access to premiere brands in the HVAC/R industry. Today, the Ware Group is Johnstone Supply’s largest member.

    Inventory depth and breadth are of primary importance to the Ware Group and made possible by strong vendor relationships and distribution channel expertise to get customers what they need, when they need it. Over $65 million in inventory is available with delivery at all branches, and after-hours emergency support.

    The Ware Group has experienced, local management teams with friendly, knowledgeable, and dedicated staff. They are constantly investing in their people so they can be a trusted resource and provide the latest information and unparalleled customer service. Company culture is a primary focus at the Ware Group making it an incredible place to work. “We look closely at the type of individual we hire,” stated CEO Henry Puente. “We want to attract people who are knowledgeable and who share our commitment to the success of our customers. Many of our employees have worked at the contractor level and understand the contractor’s language.”

    Customer training is a key part of the Ware Group value proposition. They offer many virtual training opportunities through Johnstone University and vendor partners. They are also partnered with several trade schools around the State of Florida, including J-Tech in Jacksonville, Orange County Technical College in Orlando and with NATE. They have dedicated Technical Service Advisors who provide troubleshooting assistance to their customers, perform job site visits, training and more.

    The Ware Group is committed to the JOHNSTONE ADVANTAGE – Saving You Time, Making you Money with every order, every day. Their mission is to be the leading independent regional wholesaler in the Southeast, by providing excellent marketing and distribution services to the licensed HVACR contractor and HVACR supplier who are committed to the HVACR supply chain.

    The Ware Group’s Technology Advantage ensures speed and accuracy with state-of-the-art technology to help you conduct business 24 hours a day, 7 days a week. Online ordering, product information, real-time pricing and availability, barcode scanning, account information and much more are all easily accessed through their mobile app (OE Touch) or JohnstoneWareGroup.com.

    B2B integration connects your ordering process to Johnstone’s system for an easy-to-use ordering method, eliminating redundancy and errors.

    Stop by any Ware Group location to experience great customer service…. Saving You Time, Making you Money!

    https://hvacinsider.com/the-ware-group-celebrates-40-years-with-johnstone-supply/

  • Tuesday, November 02, 2021 11:03 AM | Anonymous

    Stakeholders express concern about loopholes, allocations, and transfer taxes

    Hudson-Wharehouse.jpg


    RESTRICTED SUPPLY: With the restriction on virgin supply so severe in 2024, it is likely reclamation will play an important role on the supply side. (Courtesy of Hudson Technologies)


    Last December, Congress passed the American Innovation and Manufacturing (AIM) Act, which gave the Environmental Protection Agency (EPA) the authority to phase down HFCs to 15% of their baseline levels by 2036. Ever since then, the HVACR industry has been waiting anxiously to find out how EPA planned to implement the legislation.

    Right on schedule, on September 23, EPA delivered its final rule, which established the HFC production and consumption baselines from which reductions must be made, codified the phasedown schedule (see Figure 1), and established an initial methodology for issuing allowances for 2022 and 2023. The rule also outlined how it planned to ensure compliance with the phasedown limits.

    HFC production and consumption phasedown schedule.

    Follow-up guidance came on October 1, when EPA released the 2022 allowances for companies that produced and/or imported HFCs in the U.S (see Figures 2 and 3). Then additional information came on October 8, when EPA announced that it had granted multiple petitions that sought to further restrict the use of HFCs in sectors where they are used, such as in air conditioning and refrigeration equipment.

    Distribution of HFC Consumption Allowances for 2022.

    Production allowances allocated to each company for 2022.

    That’s a lot of information to digest over a short period of time, but stakeholders in the HVACR industry have a few opinions about how EPA plans to handle the impending HFC phasedown.

    Areas of Concern

    While the final rule contained several areas of concern to some in the HVACR industry, most were pleased that EPA released the information on time. Helen Walter-Terrinoni, vice president of regulatory affairs at the Air Conditioning, Heating and Refrigeration Institute (AHRI), noted that AHRI and its members appreciated the significant effort by EPA to finalize both the allocation rule and to publish the allocations for 2022 in keeping with the very aggressive schedule mandated by the AIM Act.

    “It is a detailed rulemaking that required significant data collection and analysis to properly complete,” she said. “The final rule was very similar to the proposed rule, so there were no surprises.”

    Joe Martinko, senior business director - Americas, thermal and specialized solutions at Chemours, added that Chemours also applauds EPA for working very quickly and diligently to meet the statutory deadline and complete the allocation rule. “The final rule outlines a large portion of the phasedown that's needed to get to lower GWP products and for the industry to meet that need with next-generation products. We're very excited about that.”

    That said, Chemours was concerned with one aspect of the final rule, which has to do with the transfer tax that is levied on companies that trade allowances with one other.

    “From an allocation standpoint, there's typically been a tax of 0.1% to 1%, when those trades are carried out,” said Martinko. “We were surprised that the EPA issued a 5% tax on that, as we expected it to be in line with historical precedent.”

    Arkema was also surprised by the 5% transfer tax, which is significantly higher than under the ODS phaseout. Glenn Haun, sales director - Americas, Fluorochemicals at Arkema, noted that since HFCs are far more numerous, the need for allowance trading between producers will be even more important and that the much higher fees will be detrimental to achieving market efficiencies. In addition, Arkema would have liked EPA to account for imported products containing HFCs.

    “The rule does not address imported products containing HFCs, which could represent as much as 10% of the baseline consumption,” he said. “This strongly favors imports of both HFCs and equipment containing HFCs over domestic production, which we believe goes against one of the main objectives of the AIM Act: helping support and advance U.S. manufacturing and technological leadership. It was surprising the agency didn’t at least offer to study the problem going forward to ensure it doesn’t become an avenue for illegal imports.”

    Honeywell also remains concerned about the potential loophole for imported products and equipment containing HFCs, said Ken West, vice president and general manager at Honeywell Fluorine Products.

    “Under the rule, these products are not subject to the requirement to hold allowances,” he said. “But we are encouraged by EPA’s signaling in the final rule that the agency will consider addressing HFCs in imported products and equipment in a future action. The final rule also takes important steps to ensure that the HFC phasedown is effectively enforced.”

    Another area of concern is that the rule requires a significant amount of new reporting requirements, which may be difficult for some to comply with, said Kate Houghton, vice president of sales and marketing at Hudson Technologies. “Additional data collection and systems to support collection and reporting will likely be necessary and will no doubt be a learning curve for many.”

    However, the reporting provisions are intended to help prevent illegal imports, said Houghton, who expects to see EPA work with industry members to strengthen what currently exists. More actions may be necessary to prevent the kind of illegal importing seen in Europe after the F-Gas regulations were enacted, she added.

    As a refrigerant reclaimer, we are disappointed that the EPA chose to provide all of the financial power of the allocations to the producers and importers.
    -Carl Grolle
    President

    Allocations

    While the HVACR industry was eagerly awaiting EPA’s final rule, finding out how HFCs would be allocated next year was of equal concern. In its methodology, EPA used the average of the three highest years of production or consumption of HFCs from 2011 to 2019 in order to calculate the baseline from which future reductions will be made. For 2022, most of the allocations went to chemical manufacturers.

    Bobby M. And Sheena M. review a reclamation job sheet at Golden Refrigerant.

    JOB REVIEW: Bobby M. And Sheena M. review a reclamation job sheet at Golden Refrigerant. (Courtesy of Golden Refrigerant)

    “As a refrigerant reclaimer, we are disappointed that the EPA chose to provide all of the financial power of the allocations to the producers and importers,” said Carl Grolle, president of Golden Refrigerant. “I would have like to have seen the allowances more broadly spread among industry groups. The allowances provide significant market control of all refrigerants going forward to a select group of companies. Let’s hope the allowance holders provide fair and reasonable access to the refrigerants to all parties and don’t use the allowance rights to push their interests in the marketplace.”

    Daikin would have liked to see allowances be partially provided to OEMs in addition to the chemical producers, said Dave Calabrese, senior vice president of government affairs at Daikin U.S. Corp. “We believe an OEM allocation would reduce the chance of HFC market dislocation and potentially lower consumer costs. In addition, an OEM allocation would encourage a more orderly HFC phasedown by incentivizing OEMs to transition to lower climate impact refrigerants and to reduce charge volume.”

    Another concern is that HFC allowances are only announced several months in advance for the following year, which does not give industry much time to react or plan. That is because under the AIM Act, EPA is directed to calculate and determine the quantity of production and consumption allowances for the following year by October 1. Chemours, for one, would have liked to see a longer timeline.

    “Having visibility many years out helps us make longer-term investment decisions, especially if investments are going to include new assets, such as building a new plant,” said Martinko. “As a supplier, we would have liked to see the allocations go out a number of years — beyond 2024. We did provide that view upfront to the EPA.”

    Industry Effects

    As a result of EPA’s final rule, the HVACR industry will definitely see changes in the coming years. Next year the industry must cut production of HFCs by 10%, and then a steep cut comes in 2024, when production is reduced to 60% of the baseline established by EPA.

    “With the restriction on virgin supply so severe in 2024, it is likely reclamation will play an important role on the supply side,” said Houghton. “It is the contractors who do the hard work of recovery, and it will be incumbent on them to seek to recover the greatest amount possibly to lessen the potential supply gap in 2024 and beyond. As reclaim continues to increase in importance to narrow the gap on the supply side, contractors will also benefit from the dollars paid by reclaimers’ for the HFCs they recover, which we believe will help to grow reclamation significantly.”

    Still, the rule adds significant cost to all levels of the industry outside of the allowance holders, said Grolle, as it is the most significant change to the rules since they were first created in response to ozone depletion.

    “Reclaimers are going to have to find ways to stay profitable with the higher costs and lower yields from reclaiming blended refrigerants,” he said. “Contractors and end users will soon realize that refrigerants are going to be a scarce commodity going forward. They will need to adapt their operations to insulate themselves from the price fluctuations, increases, and product shortages. Distributors and contractors will also see significant burdens due to the ban on disposable cylinders.”

    In the final rule, EPA has called for a ban on disposable cylinders starting in 2025. That decision came about after looking at the European Union’s (EU’s) HFC phasedown, which resulted in a thriving black market for illegally imported refrigerants. The EU’s phasedown required that HFCs be sold in refillable containers, and as a result, disposable cylinders are a common feature of illegally imported HFCs there. EPA wanted to avoid that scenario in the U.S., hence the ban on disposable cylinders.

    Chemours agrees that EPA’s decision to ban disposable containers starting in 2025 will be an issue for the HVACR industry. “We believe that this approach does overly burden the industry,” said Martinko. “We would’ve liked the approach of ensuring that bulk materials are certified as they come into the country, rather than just banning all disposable cylinders.”

    The HVACR industry will likely see further effects of EPA’s final rule in the near future, particularly from the petitions that were granted on October 8. In general, these petitions request that EPA follow California’s phasedown regulations, which require a 750 GWP limit for air conditioning and a 150-GWP limit for most commercial refrigeration equipment.

    “Granting the petition does not finalize regulations requiring the transitions,” said Walter-Terrinoni. “The timing and GWP limits will be determined through the rulemaking process within the next two years. Although, the rulemaking process could be shorter, as EPA has considerable data supporting the petitions, such as SNAP Rules 20 and 21. Several of the petitions, including AHRI’s joint petitions, asked EPA to move forward with a Notice of Proposed Rulemaking, rather than using the negotiated rulemaking process.”

    Even though more information about the HFC phasedown will be coming from EPA, many in the HVACR industry are happy that the phasedown is finally happening at the federal – rather than a state – level.

    “We continue to support a coordinated effort and believe this is a key step in the transition from HFCs to safer, low-GWP solutions such as HFOs, which significantly reduce the climate impact of refrigerants, aerosols, solvents, and blowing agents, while spurring U.S. job creation, manufacturing, and industry leadership,” said West.

    November 2, 2021
    Joanna R. Turpin

  • Monday, October 18, 2021 1:40 PM | Anonymous

    The onset of COVID-19 (COVID) has many homeowners more concerned about their indoor air quality (IAQ) these days. But what many people forget is that the IAQ arrow was trending up long before the pandemic started. If anything, the pandemic has just sped up that growth, primarily because people are spending a lot more time inside of their homes.

    Trane-Residential-Product.jpg


    This provides a great opportunity for HVAC contractors to better serve their customers while also improving their bottom lines. If contractors are not already “all in” on IAQ, they should be. Here are 5 reasons HVAC contractors should be offering IAQ solutions to their customers.

    (Photo, Courtesy of Scott Clinton on behalf of Trane Residential)

    1. Homeowners want these products, but only HVAC contractors can provide whole-home (versus single-room) solutions

    There is a need in the market that only the HVAC contractor can handle. Sales of single-room air purifiers have risen sharply at places like Amazon since the pandemic started. However, those products address a single room rather than an entire home.

    For years, HVAC contractors have preached selling not just an air conditioner or furnace but rather a whole-home solution. No reason to stop that now. Homeowners are ready to have that conversation. HVAC contractors are the experts in this area. They are focused on multiple items such as temperature, humidity, and — yes — air quality. They can customize a solution based on the issues the homeowner is facing instead of offering just a spot treatment solution.

    If there is an issue in one area of the home, there is a good chance that the air — and problem — is circulating throughout the entire home system and will not be treated properly with a single-room solution.

    Solutions like the Trane CleanEffects® whole home air filtration system can be offered. Products like this eliminate virus particles and other unwanted airborne contaminants in every room of the home with a single unit.

    Trane CleanEffects Air Cleaner.

    IAQ is here to stay: A Trane CleanEffects whole-home air cleaner offers homeowners a filtration solution for the entire home. (Courtesy of Trane Residential)


    2. Peace of mind

    It certainly looks like COVID-19 pandemic is here to stay, and it is up to individuals to find a way to minimize their personal concern in this “new normal.” People want to trust that the air they are breathing in their homes is safe.

    Research indicates that people spend approximately 90% of their time indoors. Today’s homes are better insulated, tightly sealed, and use less energy; however, this can trap indoor pollutants, making indoor air up to five times more contaminated than outdoor air. That’s why it’s imperative to educate homeowners on why they should invest in quality air products, like a proper air filtration system, that are designed to help make the home and the air they breathe the best possible.

    3. It is more than COVID

    October is indoor air quality awareness month, and it should be a time to remember IAQ is not simply protecting people from an airborne virus. Many people suffer from allergies and asthma, which makes particulate matter a big issue in many homes.

    A recent study indicated that over 70% of homes have particulate matter issues at the PM 2.5 level or lower. And as many HVAC contractors are aware, that size particulate causes exasperation of asthma and allergy triggers.

    There's more in your indoor air than people can easily see — dust, smoke, pet dander, lint, pollen, viruses, and other particles. Even though these particles can’t be seen, they could be negatively affecting the health of occupants. All of these particles in the air are potential triggers for asthma and allergy attacks. Dust, smoke and bacteria are often 0.3 microns or less. At that size, allergens can get deep into the lungs because they aren’t filtered well by the nose and throat.

    Solving these IAQ issues is directly leading to improving the health of those individuals. Asthma affects more than 24 million people in the U.S., including more than 6 million children. And allergies are the 6th leading cause of chronic illness in the U.S., with an annual cost of $18 billion.

    Adding an air cleaning system can help remove airborne particles and allergens too small for your nose and mouth to filter naturally.

    4. To make more money

    Of course, HVAC contractors are not suggesting IAQ products that are not needed just to raise their average ticket price, but providing the correct solutions will certainly raise their average ticket price.

    Many of these products are very simple to install, so from a labor time perspective, it is actually quite minimal. IAQ can be profitability with a purpose. Contractors are offering products that truly do make a difference, so they should be much more comfortable offering the upsell at the kitchen table.

    5. Earn the trust of a homeowner and turn them into a lifelong consumer

    There have been a lot of claims made in the IAQ space. And many of those do not hold up in actual applications. A lot of companies that were not in the IAQ space before the pandemic see it as a bit of a gold rush and are trying to cash in on the current pandemic.

    It is important for contractors to look at the data and research that all manufacturers are publishing and interpret the results – and to identify products that have been rigorously tested and are awarded trusted certification, such as the Asthma and Allergy Foundation of America’s asthma and allergy friendly® Certification Program that can allow contractors to make more informed suggestions to their customers without fear of promoting false or exaggerated claims.

    Contractors should be reading to make sure testing protocols have been followed and the environment/conditions are similar to where these systems will be installed. If a manufacturer cannot provide this information to the contractor, it does bring into the question the results. Look for manufacturer white papers that describe the third-party results so you can be assured the homeowner will be satisfied.

    Another way to earn the trust of a homeowner is by taking an indoor air quality sample through a monitoring device, like the Awair Element IAQ Monitor. Contractors should take a baseline reading so they truly understand what is happening in the space. Then, once a contractor implements a mitigating action, take another reading to ensure what you intended to resolve actually happened. Data does not lie, and a monitor can do that for you.

    If HVAC contractors can solve these problems for homeowners (and prove that they did), they have a great chance of earning a lifelong customer.

    For more information on IAQ products, visit https://residential.trane.com/for-dealers/en/home.html.

    Jennie Bergman.By Jennie Bergman, Senior Product Manager, Indoor Environmental Quality at Trane Residential.
    -October 11, 2021

  • Monday, October 18, 2021 1:24 PM | Anonymous

    Some new tools will be needed with A2Ls, but overall best practices remain the same


    SAME BUT DIFFERENT: Refrigerant cylinders containing A2Ls will be the same as those containing A1s, with a few differences. (Courtesy of ESCO Group)

    With the impending phasedown of HFCs, including the widely used R-410A, air conditioning equipment containing lower-GWP refrigerants will be coming to market over the next few years. Unlike previous refrigerant transitions, which moved from one nonflammable (A1) refrigerant to another, this transition will likely be to A2L refrigerants, which are mildly flammable. This has caused some concern among HVAC contractors and technicians who wonder whether it is safe to work with these types of refrigerants.

    Experts at a recent webinar hosted by AHRI (video below) sought to put those concerns to rest by discussing the differences between A1s and A2Ls, as well as how best practices will remain essentially unchanged for the new refrigerants.

    AHRI Refrigerant Webinar Series -WATCH on YouTube

    Safety First

    It is important to note that all A2L refrigerants are approved by the Environmental Protection Agency’s (EPA) Significant New Alternatives Policy (SNAP) program, said Mary Koban, senior director regulatory affairs at AHRI. Under this process, EPA considers the safety, toxicity, flammability, and other environmental factors before approving any new refrigerant, and all flammable refrigerants are subject to additional safety requirements.

    “EPA has allowed flammable refrigerants in residential and light air conditioning since May 2021,” she said. “They’ve also been allowed in smaller equipment, like window units and PTACs, since 2015 and chillers since 2012.”

    Some of the safety issues associated with A1 refrigerants will be the same as with A2Ls, noted Koban. Notably, hydrogen fluoride is a gas formed upon combustion of any fluorinated refrigerant, and oxygen deprivation is possible when a refrigerant leaks out into a tight and enclosed space. Frostbite is also possible due to quickly releasing liquid refrigerant, so personal protective equipment (PPE) should be used by technicians and firefighters.

    “As for differences, lower (A2L) and higher (A3) flammability refrigerants will need to be used in compliance with new regulations,” said Koban. “In addition, A2L refrigerants are characterized as having a low flame speed or burning velocity less than 10 centimeters per second and a low heat of combustion. A3 refrigerants, such as R-290 (propane), have higher flame speeds and a higher heat of combustion.

    The important takeaway is that A2L refrigerants are difficult to ignite, have a slow or lower flame speed, and a low heat of combustion. Still, stakeholders need to wear PPE and be properly trained in the mitigation of risks due to A2L refrigerants.

    Best Practices

    When comparing installation and service practices, according to the appropriate standard (UL 60335-2-40), there are only three requirements for an A2L installation that are not required for A1 systems, said Jason Obrzut.

    “These requirements are to purge the circuit with an inert gas, evacuate, and leak test the unit,” he said. “However, based on industry best practices, most would agree that these requirements were things that should have been done with an A1 installation as well. Technicians and contractors employing industry-accepted best practices will notice little or no change at all in their service practices or their installation practices.”

    As for the tools required to service A2L equipment, some will remain the same, but some, including recovery machines, vacuum pumps, and leak detectors, will need to be compatible with A2L refrigerants.

    “For things like recovery machines or vacuum pumps, it would be best to verify that they’re A2L capable moving forward,” said Obrzut. “If you have an arsenal of recovery machines, as you replace them over the next few years, it would be beneficial to ensure that they’re A2L rated, so you’re set up for the transition. AHRI offers a list of A2L-compatible tools at www.ahrinet.org/saferefrigerant.”

    Technicians will be able to identify equipment that uses A2L refrigerants by way of labels that OEMs will be required to affix to the units. These labels will include a flame symbol, which will alert technicians to the fact that additional precautions will need to be taken when servicing that equipment, said Obrzut.

    Refrigerant Cylinders

    Disposable refrigerant cylinders containing A2Ls will be the same as those containing A1s — DOT 39 — but there will be some differences, said Jeff Warther, HVACR business development and training manager at Chemours.

    “Disposable refrigerant cylinders will be the same rated pressure as the current R-410A cylinders, but the A2L cylinders will have a pressure relief valve. If the cylinder pressure is too high, this relief valve will only release enough refrigerant to reduce the pressure in that cylinder, and then it’ll reset,” he said. “This compares to R-410A cylinders, which have a rupture disc, which means when it is overpressurized, the rupture disc pops and releases all the refrigerant.”

    Another difference between R-410A and A2L disposable refrigerant cylinders is that while both will be gray in color (as are all refrigerant cylinders, per AHRI Guideline N), the A2L cylinders will either have a red band or the entire top of the cylinder will be red. In addition, A1 refrigerant cylinders have a right-handed thread, and A2L cylinders will more than likely have a left-handed thread on them, said Warther.

    All of the safe handling practices that apply to A1 refrigerant cylinders also apply to A2L cylinders with the main difference occurring at the end of life, said Warther. With an A1 cylinder, technicians remove or puncture the rupture disc, and on an A2L cylinder, a tool must be used to puncture the side of the cylinder itself.

    As for recovery cylinders, both A2L and A1 cylinders will be gray in color with a yellow top; however, the A2L cylinders will likely have a red band or stripe as well. When recovering refrigerant from an A2L system, the best practices are the same as with A1 systems:

    • Maintain a vacuum on empty cylinders to help ensure refrigerant purity when filled with refrigerant;
    • Properly label recovery cylinders by refrigerant type contained within the cylinder;
    • Never tamper with relief valves;
    • Ensure that scales are accurate (all refrigerants have different liquid densities and fill weights will vary by product); and
    • Return full recovery cylinders to the proper source for reclamation.

    The best practices for handling A2L returnable cylinders include:

    • Verifying the refrigerant label matches any color code or equipment labels;
    • Verifying proper hookup of charging hoses. Do not charge to the discharge side of the compressor;
    • Removing liquid phase refrigerant from the cylinder. Once removed, refrigerant can be flashed to vapor for charging;
    • Opening access valves slowly;
    • Protecting cylinders from moisture and rusting during storage; and
    • Keeping cylinders away from incompatible or incendiary materials in storage.

    As Warther noted, “Hopefully everyone sees there’s a theme to the transition from refrigerants like R-410A to new A2L or lower-GWP refrigerants like R-454B or R-32. Basically, getting back to basics and incorporating just a few new procedures and tools will help make the transition much easier.”

    October 11, 2021 - Joanna R. Turpin

  • Wednesday, October 13, 2021 12:16 PM | Anonymous

    The HVAC industry may be on the verge of change. What homeowners and property managers expect from their buildings is shifting, and HVAC contractors will have to adapt to serve these new markets. One of the most important changes to stay up to date on is the growing smart home movement.

    Smart homes, which feature extensive Internet of Things (IoT) technology throughout, are becoming increasingly popular. Experts predict there will be 478.2 million smart homes worldwide by 2025. These high-tech buildings improve energy efficiency and make everyday tasks easier, and they could be a profitable opportunity for HVAC contractors.

    Why Should HVAC Contractors Care About Smart Homes?

    HVAC professionals can’t afford to pass on the potential of this movement. End-users spent $151 billion on IoT solutions in 2018, and that figure will keep going up as more homes feature these devices. This trend could be highly lucrative as it gains momentum, and smart HVAC could lead its growth.

    Home HVAC systems are the ideal use case for IoT technologies. Heating and cooling are typically among a house’s largest energy consumers, and IoT connectivity can ensure these systems use only as much power as necessary. As consumers start to care more about the environment, more will want to capitalize on that advantage.

    Similarly, HVAC systems are often some of a homeowner’s largest expenses. The promise of reducing related costs through improved efficiency and remote operation is an enticing one. If contractors delivered these benefits through smart HVAC devices, they could stand to gain a considerable amount.

    If nothing else, smart homes will likely become the standard in the future. As the industry shifts that way, contractors already familiar with these technologies will see early success. With all that in mind, here’s how HVAC contractors can get involved with this trend.

    Taking Note of Consumer Trends

    The first step in getting involved in this area is learning what homeowners want. Contractors will have more success selling clients on upgrading to smart HVAC systems if they understand how they can meet their needs. Knowing why people may desire IoT HVAC devices will make it clear how to apply them more effectively.

    The most common reasons for wanting a smart heating or cooling system are energy efficiency and convenience. IoT devices can improve power consumption by monitoring energy use and temperature to use as little electricity as necessary, appealing to eco-conscious consumers. Features like integration with other devices and smartphone controls will entice tech enthusiasts.

    HVAC contractors can check homeowner blogs and discussion boards to keep an eye on developing preferences and trends. When they know what consumers want, they can invest in IoT devices and expertise to achieve better results.

    Growing Familiar With Smart HVAC Technologies

    Contractors should familiarize themselves with what intelligent HVAC technologies are available in today’s market. Professionals know what problems homeowners may face and can look for products that solve them. They can serve smart home customers better when they understand what’s available and how it works.

    Clients will have various needs, requiring different devices to meet them. For example, homeowners with ductless air conditioning will need ductless smart thermostats to work with their system. A traditional IoT thermostat may not be sufficiently compatible, limiting its usefulness.

    Contractors should also understand different technologies’ wireless compatibility. Customers likely want systems that can work with their other IoT devices, narrowing down their options. Understanding how smart HVAC systems mesh with other technologies like Alexa, Google Assistant or IFTTT will help connect clients with the best solution.

    Partnering With IoT Companies

    As contractors look to understand the smart HVAC world more, they should look for partnership opportunities with IoT companies. The manufacturers behind these devices may have programs to become certified installers or authorized sellers. Pursuing these connections will help HVAC professionals learn more about what these systems have to offer.

    Partnerships will also give contractors a level of expertise in managing these systems their competitors may not have. More homeowners may start looking for these certifications as the IoT becomes more popular. Pursuing them now can ensure HVAC professionals are equipped to serve tomorrow’s markets.

    Working on New Smart Home Construction Projects

    Contractors can look for opportunities to work on new smart home construction projects. Many consumers are gradually adding IoT systems to their houses, but most new builds feature built-in intelligent technologies. These projects give HVAC professionals a chance to gain experience installing IoT systems and seeing how they fit with a house’s other infrastructure.

    In January 2021, new home construction hit its highest level since 2006, despite COVID-related slowdowns. Homeowners today are looking to build new, presenting the perfect opportunity for smart home growth. Contractors can offer to install these technologies in new houses from the beginning, pushing the smart HVAC trend further.

    As contractors gain experience building smart homes, they’ll have evidence of their expertise to show customers. Whether clients want to construct a new house or add IoT functions to their current one, they’ll appreciate someone with demonstrable experience. Seeking these projects early will ensure HVAC professionals build their IoT portfolios before they become more in-demand.

    Smart HVAC Is the Future of the Industry

    As smart homes become more prominent, homeowners will expect smart HVAC systems. Contractors that get involved in these technologies now will be better prepared for this demand.

    Within a few years, IoT HVAC systems could become the norm. If contractors wait too long to learn about these devices and how to install them, they’ll quickly fall behind the competition. Embracing this shift early will guarantee future success.

    -Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine discussing the latest industry innovations and trends.

  • Wednesday, October 13, 2021 12:09 PM | Anonymous

    One of the most important elements of a successful business transition is transferable value. No matter what an owner sees for the future of the business, transferable value can be the common denominator that makes all goals more achievable.

    What is Transferable Value?

    Transferable value for a closely held business is most simply what a business is worth to someone else without its original owner. Transferable value should not be confused with profit. Just because your copany brings in millions of dollars of profit each year does not necessarily mean it has transferable value. Actual transferable value in a business is determined not by how well you run the business but by how well the business runs without you.

    Business owners aren’t always aware that transferable value is more than a formula involving multiples of earnings or some calculation of discounted future cash flows. To get a more accurate representation of the current state of your company’s transferable value, you can start by asking yourself a few questions:

    If you permanently leave your business today, would it continue with minimal disruption to its cash flow?

    Who will be responsible for running the business without you—and with minimal disruption to cash flow?

    Value Drivers

    One way to start to build transferable value is to evaluate your value drivers. Installing and enhancing value drivers can help create a company that can be transferred to someone else (whether that’s the next generation of family members or an outside third-party buyer)—without the owner—with minimal disruption to its cash flow. Some examples of value drivers that you may need to focus on are:

    1. Next-Level Management
    2. Operating Systems Demonstrated to Increase the Sustainability of Cash Flows
    3. Diversified Customer Base
    4. Proven Growth Strategy
    5. Recurring Revenue That Is Sustainable and Resistant to Commoditization
    6. Good and Improving Cash Flow
    7. Demonstrated Scalability
    8. Competitive Advantage
    9. Financial Foresight and Controls

    One might measure the effectiveness of value drivers in two ways:

    1. Their positive contribution to cash flow.
    2. Their ability to continue to contribute to cash flow under new ownership.

    A company with strong value drivers might demand (and receive) a higher multiple on the same amount of

    EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) than a company with weak or non-existent value drivers.

    Build Transferable Value with Your Management Team

    Building a management team that you can confidently leave your company with can be challenging. You may want to create a loyal “next-level” management team that will not only maintain the value of your business but is just as motivated as you are to grow the business to new heights. Understanding where your company may have weaknesses is essential in knowing the type of person you will need to attract to help fill the gaps. It’s worth it to ask yourself whether you are focusing on attracting people with the skill sets the company needs to accomplish growth independently from the efforts and resources of the current owners. Establishing this highly qualified team long before you think about initiating a transfer can give them the time and space to prove their ability to perform.

    Attracting the right team is the first step, retaining the team long after your departure is the real task. To hold onto these vital team members, they may require more money or some percentage of ownership as a condition of employment. Creating an effective incentive plan that fits the needs of your team is the best way to ensure your management team stays in place and continues to increase business value after your departure.

    Originally published: 10.01.21 by Keven Prather


  • Wednesday, October 06, 2021 10:36 AM | Anonymous

    Help customers achieve peace of mind, energy security by talking preparedness early

    The growing electricity demands being placed on the country’s century-old grid are resulting in an increased number of unexpected power outages across the U.S.

    In fact, the U.S. endures more blackouts than any other developed nation. According to federal databases at the Department of Energy (DOE) and the North American Electric Reliability Corporation (NERC), the number of U.S. outages lasting more than an hour has increased steadily over the past decade.

    With this in mind, it’s no surprise that a growing number of Americans are seeking reliable electrical supply. For contractors and construction professionals, this means both residential and commercial customers will be interested in learning about their backup power options — which is why it’s important to be well-versed in reliable, portable, and efficient backup power fuels.

    Propane has become increasingly popular because of the advantages it offers. Most notably, propane backup power provides affordable resilience for everyone: homeowners, businesses, commercial building owners and operators, and more.

    How do grid failures and power outages affect commercial customers?

    An interruption to power can take its toll on a business including loss in productivity, sales, and product, as well as brand damage and safety issues. According to data from the DOE, power outages can cost businesses as much as $150 billion per year. Whether voluntarily or based on code requirements, many commercial buildings are incorporating backup power systems to avoid these costly challenges.

    S&C Electric Company surveyed facility and energy managers of commercial and industrial businesses across the U.S. in 2018 and found that productivity loss and delays within service, deliveries, and production were the top two problems faced by businesses as a result of power outages. The same study found that around 82% of all businesses experience an outage at least every two years, and 24% of respondents experience an outage once a month or more.

    How do grid failures and power outages affect residential customers?

    Eaton’s Blackout Tracker Annual Report looks at the scope and severity of power outages across the country. According to its 2017 report, 36.7 million people were affected by 3,526 power outages, and the average power outage lasted approximately 81 minutes. Recently, the devastating weather in Texas left millions without heat, water, or electricity for several days during freezing temperatures. Additionally, over one million people were without power and air conditioning following hurricane Ida in Louisiana, and California’s rolling blackouts and wildfires create significant challenges for homeowners on a regular basis.

    Power outages can impact a variety of systems in the home, including smoke and fire alarms, refrigeration units, heating and cooling systems, health and safety equipment, and many other applications. Helping customers select reliable backup power allows them to avoid unplanned power outages, continue operating appliances in their home, and ultimately save money and stress. This is especially important for customers who rely on electricity to power medical equipment or work from home and need uninterrupted power.

    The reliability and versatility of propane power generation

    The staggering statistics outlined above reinforce the need for reliable, affordable power in residential and commercial projects. Everyone needs to be able to bounce back. Fortunately, propane offers scalability and performance to power any size of project or business.

    Whether used for towable and portable power on construction sites, prime power generation in businesses, or standby power in a home, propane offers reliable power and versatility. And with a propane backup generator, construction professionals can give customers more than just nonstop power — they can provide affordable peace-of-mind, too.

    When it comes to selecting a backup power fuel, propane offers benefits. For example, propane’s has an indefinite shelf life and can be stored for extremely long periods without degrading.

    Propane tanks can provide scalable on-site storage for backup power systems of any size. On-site fuel storage is an important consideration and can help ensure that the generator is ready to operate and won’t be subject to upstream fuel reliability issues.

    Surprising to some, propane offers more environmental protection compared with other options. Propane burns clean, reducing nitrogen oxide (NOx) emissions, particulate matter, and CO2 emissions. According to data from the DOE, propane produces 16% fewer carbon emissions per unit of energy compared with diesel. Propane is also non-toxic, non-poisonous, and won’t contaminate soil or water.

    Because of propane’s energy versatility, it can power many other major energy systems and appliances throughout a home or building, too. In fact, residential and commercial customers can attain whole-building standby protection at an affordable price by combining a propane generator with a suite of propane appliances that operate full time including space heating, water heating, cooking, fireplaces, clothes dryers, and outdoor amenities. Plus, having propane appliances throughout a building can actually reduce its reliance on standby power, oftentimes allowing customers to downsize to a smaller, more affordable backup unit to power lighting and ventilation fans.

    Construction professionals: now is the time to start a conversation with your customers about resiliency, preparedness, and the power of propane generators—ultimately giving you a leg up on the competition.

    October 3, 2021

    Bryan Cordill

    https://www.achrnews.com/articles/145576-propane-can-offer-hvac-customers-a-reliable-option-for-backup-power


  • Tuesday, September 28, 2021 1:43 PM | Anonymous

    The Environmental Protection Agency “EPA” has issued a ruling to phasedown R-410A and other Hydrofluorocarbon (HFC) refrigerants beginning January 1, 2022. This ruling will fulfill The American Innovation and Manufacturing Act, part of the “Consolidated Appropriations Act, 2021, signed into law by Congress and the President in December of 2020.


    Background

    Hydrofluorocarbons were first introduced as refrigerants forty-five years ago, as a safer alternative to ozone depleting substance (ODS). However, since their inclusion in the Montreal Protocol in 1997, governments have worked towards their phase-down understanding the effects of these greenhouse gases.

    When the President signed the AIM Act in December of 2020, it provided the EPA the authority to phase-down the production and consumption of listed HFCs through an allowance allocation. The AIM Act established a federal framework for guiding our industry through a transition away from HFCs and into next generation refrigerant technologies, many of which are made and manufactured here in the United States.

    Phasedown

    HFC production and consumption will be phased down by 85-percent over a 15-year period via a closed allowance allocation and trading program. This provides for an orderly and market, and consumer-friendly transition from HFCs. The HFC phasedown schedule call for a reduction in the production and importation of HFCs as follows.

    • January 1, 2022 by 10%
    • January 1, 2024 by 40%
    • January 1, 2029 by 70%
    • January 1, 2034 by 80%
    • January 1, 2035 by 85%

    Similarly, equipment manufactured for HFC refrigerants will be phased down as well. The industry will transition to new equipment, and new refrigerants, Low Global Warming Potential (GWP) Refrigerants. Many Low GWP Refrigerants are flammable, classified by ASHRAE as A2L (slightly flammable), and A3 (highly flammable).

    With new Federal regulations in place, new safety standards have been developed by American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and Underwriters Laboratories (UL) for the safe handling, storage, and transportation of Low GWP Refrigerants.

    Did You Know?

    • Low GWP Refrigerants include A2Ls and A3s.
    • A2L equipment will require refrigerant detection systems.
    • There are new guidelines for the safe transportation of Low GWP refrigerants.
    • A2L cylinders will be color-coded red.
    • New National Fire Protection Association (NFPA) fire safety storage requirements.
    • The common practice of storing refrigerant cylinders presently utilized at schools and wholesalers will change.

    THESE ARE THINGS YOU NEED TO KNOW!

    Preparing the Industry for the Transition

    Over the last several years, members of the Air Conditioning, Heating, and Refrigeration Institute “AHRI”, Safe Refrigerant Transition Task Force “SRTTF”, which ESCO Institute is a member, have worked to establish resources following to assist you, and those you train, prepare for this transition.

    Step 1: Watch this webinar providing an introduction to the transition, with Jason Obrzut of the #SRTTF and Director of Industry Standards and Relations at ESCO Institute.

    Step 2: Read Low GWP Refrigerant Safety to help you understand the safety protocols for working with flammable refrigerants. (ESCO proctors can login and view a copy of the Low GWP Training Manual in the proctor resource center.)

    Step 3: Learn from industry experts representing AHRIChemours, Daikin, ESCO Instituteand Honeywell, all members of the Safe Refrigerant Transition Task Force, on different aspects of the phasedown, and safety procedures during the HVAC Excellence / ESCO Group conference.  

    "Codes and Standards Unlocked
    Presented by Mary Koban and Helen Walter-Terrinoni of AHRI  
    A2L Train the Trainer
    Presented by: Jason Obrzut "CMHE" of ESCO Institute
    AIM Act Compliance on Refrigerants
    Presented by: Tim Snyder of Daikin Americas
    Bring Us Your A2L Refrigerant Questions - Town Hall
    Presented by: Charles Allgood Ph.D. and Jeff Warther of Chemours
    Choosing a Refrigerant
    Presented by: Doug Starasinic of Honeywell
    Getting Started Teaching A2L Refrigerants
    Presented by: Charles Allgood Ph.D. and Jeff Warther of Chemours
    The Burning Truth
    Presented by: Jeff Warther of Chemours

    Step 4: Prepare others for the transition with the comprehensive training program from ESCO Institute, including a training manual, elearning course, instructor PowerPoint, and closed-book certification exam. For pricing and testing options, see page 7 of our catalog.

    While most of the industrial world has safely transitioned to LOW GWP Refrigerants, these resources will help the United States transition as well. Learn more about the Low GWP Program, and the conference by visiting escogroup.org

  • Wednesday, September 22, 2021 1:04 PM | Anonymous

    Lifecycle cost and listening well can do most of the work before tax credits enter the equation

    Geothermal-Maintenance.jpgMEANS TO AN END: Long before service and maintenance scenes like this, contractors can sow the seeds of success by promoting clean energy in their areas, offering financing, and listening to customer preferences as broad as the desire for no outdoor equipment. (Courtesy of Igshpa)

    Tax incentives can dominate the conversation about the geothermal market. However, HVAC contractors who consider offering geothermal services have to consider other factors first and, if they make the move, must be prepared to sell geothermal to new customers regardless of any incentives.

    Several experienced geothermal contractors and professionals at the International Ground Source Heat Pump Association have weighed in recently on key non-tax questions surrounding the “if” and “how” of successful geothermal contracting.

    Location and Loads

    For potential residential geothermal contractors, the map matters. Kortney Lull is IGSHPA board chairwoman and vice president of business development for Midwest Geothermal. Jason Cullum is an IGSHPA board member and vice president with Ground Loop Heating and Air. They bring considerable experience from their own companies but speak collectively on behalf of IGSHPA in this article unless otherwise noted.

    In their estimation, Southern geothermal markets may be underserved compared to others. However, on the commercial and institutional sides, they add that enterprising engineers in the 1990s sold a lot of geothermal systems to school districts. Condominiums along the coast also have embraced water-source heat pumps in decent numbers.

    That represents an above-average level of general consumer awareness and a more mature market for ongoing system maintenance or replacement.

    No matter the location, IGSHPA advises a contractor to get to know their local utility and likewise put the business on the utility’s radar for references.

    The association strongly encourages taking the time to locate an IGSHPA-certified loop installer for contractors who may want to outsource that part of the work.

    The current labor shortage can reflect in driller availability, prices, and types of drilling they are willing to do. This varies considerably from place to place, sometimes partially because of the type of earth or rock that must be displaced.

    For those with a background elsewhere in HVAC, proper load calculation is also no less important in the geothermal sector.

    “Geothermal is not like a furnace,” said Cullum and Lull. “Once a geothermal loop is sized, there is a limit to how much heat it can provide.” Not accounting for things like insulation, wall materials, and window condition can make for bad outcomes.

    They note that pairing a high-output furnace with a smaller air conditioner may be a traditional move with other equipment, but “when sizing geothermal, you are sizing both heating and cooling with the same system, and you cannot put an 180,000 Btu geothermal system in a 2,000-square-foot residential home.”

    Geothermal loop diagrams.


    What’s The Rush?

    At a recent IGSHPA webinar, moderator and geothermal distributor Darrin Beller asked contractors their single biggest obstacle for selling geothermal systems.

    “Payback is probably the first,” said Rob Derksen of Michigan Energy Services.

    “They tend not to say ‘no,’ but to say ‘not right now,’” he explained. Maybe the existing furnace isn’t old enough, or maybe natural gas prices locally reduce a sense of urgency.

    One other approach can make inroads against a customer’s impulse to not dig into geothermal quite yet.

    Derksen does bring up that there can be a cost to waiting. One customer decided to wait but then wound up with no air conditioning. Making matters worse, they had already replaced their driveway in the meantime, instead of installing a loop and redoing the driveway.

    So while they had looked at geothermal as the best long-term decision — eventually — now “they had to go with their second choice (of a heat pump system) and also get through six weeks of heat.

    “Don’t sacrifice your long-term goals with a short-term decision,” he tells customers. Don’t risk creating unnecessary discomfort “and sometimes even the technology you wanted because you put yourself in an emergency,” he said.

    Look Past Payback

    For those with payback and initial cost concerns, Derksen said it is past time to embrace an established tool rather than keep preaching to the same small target market with more disposable income.

    “We need to move toward financing along with the rest of the industry,” he said. Derksen pointed to multiple resources “to expand the potential customer base and offer geo to more people without making assumptions about who can afford it. We need to offer affordability options.”

    Cullum said that the biggest thing his companies does is point out that “you have to spend money to replace what you have,” so the decision about geothermal or not comes down to its first cost but also the difference over that amount and the payment.

    If the customer’s willing to see it from that point of view, Cullum said, that drastically changes the idea of “payback” and the decision process. IGSHPA also points out that this will naturally require some discussion of how long the customer plans to own the building or home.

    Mark Sakry of Northern GroundSource Inc. shows customers the 30-year cost of ownership and annual savings in order to illustrate that the “extra” cost is not as much as they might think, especially after any rebates or breaks.

    “What they like is to hear that they’re able to convert their own property into an endless thermal resource that will cover roughly 70% [of their heating/cooling/water needs] forever,” he said.

    Derksen would like contractors to get away from “payback” altogether and embrace the focus on lifecycle costs. In that scenario, “geo wins every time, even when you factor in natural gas costs and before you even talk about tax credit.”

    Tax credits are the last part of the conversation for Derksen.

    “Instead of leading with it, it kind of seals the deal.”

    Customer-Guided Process

    Michigan Energy Services uses a consultative selling model in an effort to help the customer make the best long-term decisions.

    “A lot of times, they may not be asking about geo up front,” Derksen said, “but we’re offering a geo solution based on what they’re telling us.”

    “People make purchasing decisions based on what matters to them, no to us,” IGSHPA advised. “So it’s important to ask questions. It may be as simple as them telling you that they don’t want to have any outdoor HVAC equipment.

    “By asking questions, you will uncover geothermal sales that you never would have expected.”

    Moreover, whether the setting is residential or nonresidential, “when people purchase a product with higher up-front costs, they expect more,” IGSHPA said.

    Writing a check for double, triple, or quadruple the cost of a more familiar HVAC system translates to high expectations for not only the result but the process.

    “Cleanlines, professionalism, customer service … this principle also applies in the commercial or industrial setting” in IGSHPA’s experience.

    “How Does Geo Work?”

    There’s another question contractors must be prepared for. The details again vary from location to location, but Cullum shared his answer.

    “The ground’s 55°, you’re trying to keep it 70° up in the house. It doesn’t take a lot of energy to go from 55° to 70°” is often good enough for the sales process.

    Or, he said, “forget about temperature and think of it as there’s heat in the ground, you need to move it out of the ground and put it in the house, or vice versa.”

    Especially when considering extreme temperatures, he said, people can intuitively understand that it is easier to do that with a ground-source system than with an air source. Ground source brings the benefit of not trying to dump heat into hot outdoor air.

    Sakry acknowledged that sometimes he successfully avoids getting into the deep particulars another way.

    “I prefer not to explain to people how it works,” he said. Instead, he will say, “Do you know how the computer on your car works? But you still drive the car.”

    Hal Smith of Halco Energy in Phelps, New York, frames geothermal as “just moving heat.” He points to how a refrigerator works by removing heat as a familiar comparison.

    Ultimately, Derksen said, “if they’re calling us, they’ve done some research.”

    So he asks people to talk to him about the research they have done. Then, “we simply validate their level of knowledge or correct it where they’re misinformed.”

    This active listening approach keeps the conversation on a laymen’s level, Derksen said, and sets the table to move forward with the conversation from a common point of reference.

    But long before any kitchen table conversations, contractors might note what Smith did to plan the seeds of success.

    Halco Energy’s team went to any town halls and similar gatherings to promote clean energy wherever they could, and “eight or nine years later, we’re almost overloaded with leads.”

    These days, adapting that strategy means “doing a lot of Zoom meetings” in addition to traditional advertising options like postcard mailings and/or radio. “It took time to develop, but we’re seeing the results,” he said.

    September 21, 2021

    Robert Beverly

    KEYWORDS geothermal market / geothermal system / geothermal tax credits / Sustainability and HVACR


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